The deadline to act on a bill that would ban sweepstakes casinos in New Jersey is just days away. If Gov. Phil Murphy does not sign or veto the proposal by Thursday, Assemblyman Clinton Calabrese’s Assembly Bill 5447 will automatically become law in the Garden State.
New Jersey gives governors 45 days to act on a bill before it passes without a signature. The bill to ban sweepstakes casinos was on Murphy’s desk on July 1 following Senate approval on June 30.
SPGA Urged New Jersey Gov. Phil Murphy To Veto AB 5447
The Social and Promotional Games Association (SPGA) strongly urged Murphy to reject the measure back in June, calling it a “direct contradiction to the sensible regulatory framework introduced” by Calabrese.
“Governor Murphy has an opportunity to do what the Legislature would not — listen to facts, not fear,” said a spokesperson for the SPGA. “This bill doesn’t just mischaracterize an entire industry, it ignores data, undermines innovation, and puts New Jersey’s reputation as a forward-thinking leader in tech and entertainment at risk.”
In AB 5447, “sweepstakes” is defined as “a promotional, advertising, or marketing event, contest, or game, whether played online or in person, in which something of value, such as a prize or prize equivalent, is awarded, either directly or indirectly through means such as a dual currency system of payment that allows a participant to exchange the currency for a prize or prize equivalent.”
The measure also expands the definition of “gambling” within the criminal statutes to include “the buying, selling, or trading something of value upon an agreement or understanding that the actor will receive something of value in the event of a certain outcome in a contest of chance.”
Any person or entity found in violation of AB 5447 would be subject to a civil penalty of not more than $100,000 for the first offense and not more than $250,000 for the second and each subsequent offense.
Exemptions To The Sweepstakes Ban
However, AB 5447 does create exemptions to the sweepstakes prohibition, if:
- There exists a method of entry to participate in the sweepstakes at no cost to the participant;
- Any method of entry that is not free to the participant is ancillary to the purchase of food, non-alcoholic beverages, or other merchandise not exceeding $20 in value or such other amount to be determined by the Director of the Division of Consumer Affairs in the Department of Law and Public Safety;
- Items of merchandise will not include coins, tokens, or online credits that have no value other than permitting sweepstakes entry or that are able to be exchanged for money or merchandise from the sweepstakes operator or an affiliated company; and
- Sweepstakes entry form or the website or application used to enter an online or telephone sweepstakes clearly discloses to participants: the rules of the sweepstakes and the odds of a winning any and all prizes.
According to several surveys commissioned by the American Gaming Association (AGA), nearly two out of every three sweepstakes players said they were motivated to play for the chance to win money.
Sweepstakes casinos are free online gaming platforms that allow players to enjoy a variety of casino-style games, such as slots, blackjack, and roulette, without spending real money.
They operate in a legal gray area.